The new agreement with Microsoft gives the software giant a roughly 27% stake in OpenAI's new for-profit corporation while changing some parts of their close partnership.

OpenAI is giving its long-time backer Microsoft Corp. a 27% ownership stake as part of a restructuring plan that took nearly a year to negotiate, removing a major uncertainty for both companies and clearing the path for the ChatGPT maker to become a for-profit business.

The restructuring ends years of capital constraints for OpenAI, and grants Microsoft long-term technology access and new AGI rights under the updated deal.

Microsoft and OpenAI announced the long-awaited details of their new partnership agreement Tuesday morning — with concessions on both sides that keep the companies aligned but not in lockstep as they move into their next phases of AI development.

A new deal in pact between Microsoft and open air. It's a new stake in open air p, b, c. What does that mean? Well, joining us is Bloomberg Tech co-host Caroline Hyde. And, Caroline, with these new agreements,

The new agreement values Microsoft’s 27% stake at $135 billion and extends its IP rights through 2032, giving Microsoft investors “upside optionality.”

In the new agreement, Microsoft gets a 27% stake in OpenAI's for-profit business, the OpenAI Group PBC, worth around $135 billion.